Sunday, October 11, 2009

The wrecking crew

Jesse explains succinctly how the financiers are deliberately wrecking and looting what's left of the economy.

The money the government gave them isn't being loaned out, but instead is shoved into the stockmarket to create yet another illusory boom - so that more fees and bonuses can be earned. These are taken out of the system (where do they put their own stash?).

When the share-pumping stops, the market collapses again, less the plunder - so it's lower than before and there's even less cash to act as lifeblood for the real economy.

Meanwhile, the rich are, relatively speaking, richer than ever - even than their counterparts in 1929:
This threatens to destabilize society.


James Higham said...

Great post. Well done.

Tyrone said...

where do they put their own stash?

Would love to have the answer to this question!

Sackerson said...

James - just a precis of Jesse, I'm afraid. But I hope it's a useful service to act as a pre-reader/screening service for my visitors.

Tyrone - when you find out, do please tell me! Of course, some of them will believe in their own infallibility and still be in the market when it turns turtle; but I believe there are a number who did get out in time, in 1929.

Nick Drew said...

where do they put their own stash?

well Andy Fastow the principal Enron wrongdoer put all his ill-gotten into municipal bonds

he knew what he'd done to Enron's prospects and I guess he figured other equities might turn out to be worthless too

Anonymous said...

"where do they put their own stash?"

Judging by the gold price they are pumping uo the stock market one last time so that they can take their bonuses and invest it in something more solid like precious metals.

sobers said...

Very simple where the money should go - real assets. Assets that produce stuff that people not only want but NEED. Mines, quarries, farmland, oil wells, forests etc.

If I was a multi billionaire, the last thing I'd want to own would be paper assets. I'd buy huge tracts of farmland and woodland in democratic, stable countries. USA, Canada, Australia and NZ spring to mind.